Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if PENTAIR PLC (NYSE:PNR) is suited for quality investing. Investors should of course do their own research, but we spotted PENTAIR PLC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.
Highlighting Notable Quality Metrics of NYSE:PNR.
PENTAIR PLC has shown strong performance in revenue growth over the past 5 years, with a 6.72% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
PENTAIR PLC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 66.82% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
PENTAIR PLC maintains a healthy Debt/Free Cash Flow Ratio of 2.76, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
The Profit Quality (5-year) of PENTAIR PLC stands at 94.09%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
The 5-year EBIT growth of PENTAIR PLC has been remarkable, with 10.42% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
With EBIT 5-year growth outpacing its Revenue 5-year growth, PENTAIR PLC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.
What else is there to say on the fundamentals of NYSE:PNR?
ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.
Overall PNR gets a fundamental rating of 6 out of 10. We evaluated PNR against 131 industry peers in the Machinery industry. While PNR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PNR has a decent growth rate and is not valued too expensively.
More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.
Disclaimer
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.